According to predictions from IBM, edge vendors will take five points of market share off cloud growth in 2021. Due in part to the pandemic, cloud revenue exceeded all expectations in 2020. However, edge computing may continue to slow down the cloud’s rising star. Let's take a look at one of the top tech trends emerging from this cool new technology.
Organizations use cloud computing to process stored data. Edge computing, by contrast, gives companies access to data in real-time. Real-time may be a relative term since latency continues to be a challenge that edge computing developers contend with. In remote areas, edge computing is a bonus because there is limited or no centralized repository for connectivity.
Edge Computing Is a Top Tech Trend for 2021
Cloud computing, once a disruptive technology, has become the way to do things for most organizations. Major players include Microsoft Azure, AWS (Amazon Web Services), and Google Cloud Platform. Companies around the globe are still scrambling to adopt cloud computing technology to keep up with the competition. However, it's a well-established technology and edge computing has become the new kid on the block.
Every day, organizations accumulate larger quantities of data, and this has revealed shortcomings in the cloud computing model. Edge computing helps developers work around latency issues and issues with processing data through a data center. Data remains “on the edge,” meaning closer to where the information is needed. With this comes the ability to process information in locations with little or no link to a centralized repository.
By 2022, one report suggests that the edge computing market will jump to $6.72 billion. This will create a great need for software engineers fluent in this new technology. Edge computing will serve as networking technology and become important in open radio-access framework, both of which will rush to deploy 5G.
What's Helping Edge Computing Gain the Edge?
Edge computing handles workloads closer to endpoints instead of the data center. Deloitte predicts this market will rise to $12 billion in 2020, as up to 75% of all businesses adopt this technology by 2023.
There are several elements that will drive this growth. The fact that edge computing maintains data closer to devices can save on bandwidth. This means, improved latency for delay-sensitive applications as systems grow independent of corporate networks.
According to Deloitte, the intelligent edge can benefit organizations that manage networks, clouds, infrastructure and data centers that connect to actuators, sensors, and devices.
Networking companies are likely to be the biggest consumers of edge computing technology. Edge can also help manage the networks of service providers, telecom companies, and CDNs. For example, smart diagnostic tools can analyze data and correct problems without connecting to a data center.
However, supply issues have developed due to the chilling relationships between China and the United States. This equates to higher prices for somewhat scarce supplies. Currently, some businesses see edge computing as a potential investment for the future rather than day-to-day business, due to some challenges with implementing new technology.
OpenRAN
5G deployment poses an issue for US carriers. Traditionally, carriers have relied on proprietary hardware and software stacks. Conversely, edge computing demands numerous base stations compared to previous wireless generations.
To keep costs down, carriers plan to shift towards open standards such as open RAN, which is used to describe standards-based, virtualized architecture that carriers use for radio access networks. This technology allows them to modify access points quickly and cost-effectively.
Carriers can use different hardware components (as long as they comply with standards), which increases price competition and facilitates maintenance and configuration.
Challenges facing the technology, according to Deloitte, include the need for large-scale testing. Also, several groups are clinging to their own standards, which rather defeats the purpose of interchangeability.
Valicom Cloud Expense Management
The experts at Valicom continue to follow edge computing and other technology that can help organizations save money and run their telecom operations more efficiently.
As part of its service offering Valicom offers Cloud Expense Management as well as tracking telecom, technology, servers, and utility assets and expenses. We can help your organization manage cloud expenses with mature software tools that are intuitive and proactive when it comes to identifying opportunities for savings and identifying billing errors.
Contact us today to schedule a demo or consultation.
ABOUT THE AUTHOR: NANCY PECKHAM
Nancy Peckham is the Founder and President of Valicom Corporation, a leading telecom expense management and consulting firm in Madison, Wisconsin. Nancy launched the organization as one of the very few women in technology, seeing the gap in services and the opportunity to fulfill the client’s unique needs while leveling the telecom playing field. She has spearheaded Valicom’s evolving services, including a web-based TEM platform that tracks all IT assets and processes multi-level invoice approval for bill payment. To learn more, visit www.valicomcorp.com.